Local News

Logan County Economic Development Corporation gives yearly report

Community meeting on Woolworth Building set for Feb. 25

Jay Lee, right, president of the Logan County Economic Development Corporation board of directors, recognizes outgoing board member Alex Wright during the organization's annual meeting Monday. Another outgoing member, Rashell Fritzler, who was not present, was also recognized. (Callie Jones / Sterling Journal-Advocate)

The Logan County Economic Development Corporation looked back over the past year and ahead to the future at its annual meeting Monday, at Northeastern Junior College.

Jay Lee, president of LCEDC, welcome guests and spoke about the mission of the organization, which is retention and expansion of existing businesses, recruitment of other new business, and infrastructure development to support those businesses.

He said LCEDC's executive director and assistant director, Trae Miller and Laurie Jones, "have done a great job of following through on this mission and making these things happen."

Lee went over the organization's financials. Total revenue for 2015 was $414,813, up significantly from $115,524 in 2014 due in part to an increase in the county contribution, from $20,000 to $37,000; a $15,000 contribution from Sterling Urban Renewal Authority — there was no contribution the previous year; and an increase in private contributions from $26,650 in 2014 to $33,105 in 2015. LCEDC also received $185,175 acting as a pass through organization for the bronze sculpture projects, which will be going up soon on Main Street and W. Main, as well as funds in contributed real estate for the Woolworth Building project.

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Expenditures saw an increase from $143,459 in 2014 to $273,638 in 2015, partly because there was no director in 2014 and also because of the sculpture project. Total assets increased from $221,361 in 2014 to $326,536.

The city of Sterling's 2015 sales tax was $7.192 million compared to $7.188 million in 2014, but that sales tax revenue was going down at the end of 2015 as a reflection of the downturn in the oil and gas industry.

Sterling's hotel lodging tax went from $207,000 in 2014 to $199,000 in 2015, "which I would argue is actually a good number in light of the fact that the oil and gas downturn was happening during that time," Lee said.

He noted the unemployment rate dropped from 5.7 in January 2014 to 3.2 in April 2015 and 2.7 in October 2015; statewide it went from 4.4 in April to 2.3 in October. Sterling Workforce Center had 1,120 employer orders and there are now currently 137 open jobs in Logan County.

"We are still facing that problem of having more jobs than people available and around or qualified to do the work that we're looking for," Lee said.

The 2015 average hourly salary was $16.03 and the annual salary was $33,000, down from 2014, which matched what happened in the state.

Last year, LCEDC was actively involved with 49 different projects and prospects assisting with site selection, economic data and trends, incentive information, strategic planning and meeting facilitation. That represents 1,500 jobs and over $1 billion in capital investment.

Lee noted often people don't understand how much of Miller's and Jones' jobs involve gathering statistics and data. "Often they get requests from the state that I would argue are very, very difficult, very time consuming projects and they do a lot of work to provide that information, not only for the state but for prospective employers."

Primary industry demands have been in hospitality, restaurants/retail and agribusiness. In regards to agribusiness, Lee said they have really been investigating hemp production and processing in Logan County.

Current projects include four hotels, five restaurants, two housing projects, four industry manufacturing projects, four agribusiness, two infrastructure, seven retail/service and others. The projects represent a capital investment of $1.8 billion.

Lee spoke about key projects including agribusiness — dairy and hemp, the Industrial Park, which has died down a little since the oil and gas industry has slowed, and housing, which continues to be a problem.

"There's good new and bad news. There are homes that are staying on the market a little bit longer in comparison to what it was six months ago when the homes were on the market and gone the next day and there was no inventory of homes available. But, that still continues to be a problem," he said.

To help with that, contractor roundtables will be held in the future to talk about the need and what can be done to improve the situation.

The other major project is the Woolworth Building redevelopment. "We see great opportunities there," Lee said.

LCEDC's vision is to create a space available for the benefit of the community and provide an opportunity for enhancing the availability of arts in this area. They would like the building to possibly include a stage for performing arts, gallery spaces for visual arts, shared creative arts spaces, a commercial kitchen to allow for bigger events, and shared meeting rooms on the second level, so organizations could have a place to meet.

The goal is to raise funds locally, with the first goal being to raise money for asbestos abatement, which will cost less than $10,000.

A community meeting is scheduled for 6 p.m. Thursday, Feb. 25, at Sterling Public Library, to discuss what to do with the building.

At the end of the meeting outgoing board members Alex Wright and Rashell Fritzler were recognized. Also, first term members Andrew Fritzler, Kathy Guerin, Jeff Shelton and Samm Vandenbark, along with second term members Heather Brungardt, Shanan Doherty, Jay Lee and Terry Sanger were elected onto the board.

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